Shelby County’s $500M commitment clears way for academic medical center, pairing national and Memphis firms under a collaborative delivery model
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Regional One Health has selected its design and construction partners for a $1-billion-plus academic medical center in downtown Memphis, Tenn., advancing what officials describe as a historic public health investment for Shelby County.
The Sept. 29 announcement named Memphis Healthcare Builders—a joint venture of Turner Construction, Flintco Construction, Nickson General Contractors and Fifer & Associates—as construction manager, with HDR leading design along with several Memphis-based architecture and engineering firms.
The request for qualifications required significant local participation and barred exclusive teaming agreements, encouraging multiple partnerships. The final awards reflect this mandate, as national firms partnered with Memphis-based firms across design and construction.
“These companies have partnered with local firms, ensuring that a significant portion of this investment remains right here in Memphis,” Regional One CEO Dr. Reginald Coopwood said. Mayor Lee Harris called the investment “a historic commitment to the health and future of our community.”
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Project Scope, Site and Financing
The facility will rise on the former headquarters site of the city’s daily newspaper, The Commercial Appeal, at Union Avenue and Beale Street, which the county acquired for $23.9 million in January.
Officials said relocating to the Union Avenue site allows construction without disrupting operations at the current campus, a move Coopwood added preserves services in the downtown medical district while providing more flexibility for the build.
Plans call for a new bed tower, trauma and burn center facilities, women’s and infants’ services, an expanded emergency department, oncology and post-acute care, along with modernized ancillary suites.
Coopwood also tied the effort to Regional One’s role as a teaching hospital for the University of Tennessee Health Science Center, calling the project “foundational to our future.”
The Memphis program joins a growing group of U.S. hospital megaprojects exceeding $1 billion. Among the largest now in planning is the University of California-San Francisco’s Helen Diller Medical Center, projected at $4.3 billion.
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The Shelby County Commission committed $500 million in 2023, financed through a $25 wheel-tax increase earmarked for the hospital and two school projects. Proceeds will support bond debt service, with philanthropy and other sources expected to close the gap.
Commissioners voted 11–1 for the site purchase, citing faster delivery and fewer operational risks than rebuilding on the existing campus.
Procurement documents outlined a collaborative project delivery model featuring parallel procurements for design and engineering, as well as shared risk and incentive structures.
Regional One projects $693.6 million to $892.3 million in regional economic growth from 2023 to 2027, along with 3,600 construction jobs and 2,300 secondary jobs.
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Still, meeting labor demand may be challenging. The Associated General Contractors’ 2025 Workforce Survey found that 92% of firms report difficulty filling open positions, with 45% citing labor shortages as a cause of project delays.
At the same time, U.S. construction job openings fell to 188,000 in August—the lowest level since 2015, according to Bureau of Labor Statistics data cited by ENR—suggesting a potential cooling in demand.
Turner’s Building Cost Index showed costs rising 3.82% year-over-year in the second quarter of 2025, reflecting continued upward pressure from complex MEP systems.
Officials outlined a design phase of 18–24 months, followed by about four years of construction, with completion targeted in 2031.
